Markets Live: Sensex crashes to 6-month low of 34,377 as RBI leaves policy rates unchanged

Rupee slumps to intraday low of 74.23; rising US bond yields hit global markets

3.55 pm

Closing bell

Benchmark indices slumped 2.5 per cent in today's trade after the RBI unexpectedly maintained status quo in policy rate. Weakening of rupee to 74.23 (intraday) on RBI's policy stance spooked investor sentiment.

Weak global cues, as benchmark US Treasury yields surged to a fresh seven-year high and strong economic data fanned concerns about the risk of faster-than-expected interest rate hikes, rattled domestic investors.

The yield on the benchmark 10-year note hit a fresh seven-year high of 3.232 per cent overnight after figures out earlier were seen as increasing the odds Friday's payrolls report would also be stronger than expected.

The Sensex tanked 792.17 points or 2.25 per cent to close at a near 6-month low of 34,376.99, while the Nifty slumped 282.80 points or 2.67 per cent to 10,316.45.

Top five Sensex losers were ONGC, Reliance, Adani Ports, SBI and Bharti Airtel, while the only four gainers were Infosys, TCS, IndusInd Bank and HDFC Bank.

 

Barring IT, TECk and consumer durables, all other BSE sectoral indices ended in the red.

 

 

Oil marketing stocks tumbled to 52-week low as the government had on Thursday slashed petrol and diesel prices by Rs 2.50 per litre.

3.40 pm

Lending rates set to move higher

 

Lending rates are set to move higher -- rate hike or no -- as banks will continue to take cues from the bond market. Risks to fiscal slippages, global factors and the depreciating rupee are likely to lead to hardening of yields in the coming months. Click here to read more

3.30 pm

Bullion rates

 

Gold prices fell Rs 250 to Rs 31,850 per 10 gram at the bullion market, tracking a sluggish trend overseas amid fall in demand from local jewellers. Silver prices, too, fell Rs 100 to Rs 39,250 per kg due to reduced offtake by industrial units and coin makers. Read more

3.20 pm

2 IL&FS group cos surge 10%

 

Shares of two of IL&FS group companies defied the broader market sentiment and gained as much as 10 per cent on the bourses after the newly appointed board said it will take all necessary steps to preserve the value of the group. Read more

3.10 pm

Pre-close trade

The S&P BSE Sensex tanked 838.81 points or 2.39 per cent to 34,330.35 and the Nifty50 plunged 297.55 points or 2.81 per cent to 10,301.70 on heavy selling in oil & gas, PSU and infrastructure stocks.

 

Top five Sensex losers were ONGC, Reliance, State Bank of India, Adani Ports and Bharti Airtel, while the top five gainers were Infosys, TCS, IndusInd Bank, Wipro and HDFC Bank.

 

Weakening of rupee to 74.13 (intraday) despite RBI maintaining status quo in its monetary policy announcement dragged the benchmark indices down.  Investors remained concerned over sustained foreign capital outflows and fears of widening current account deficit in the wake of soaring crude oil prices.

The Reserve Bank of India has kept the repo rate under the liquidity adjustment facility unchanged at 6.5 per cent, reverse repo at 6.25 per cent, marginal standing facility (MSF) and the Bank Rate at 6.75 per cent.

Read more

Also, weak global cues ahead of capital outflows into the US market in view of strong economy dampened the domestic sentiment. European stocks opened lower and were set for their biggest weekly loss in a month due to rising yields ahead of US jobs data which is expected to shed light on whether higher interest rates will be needed to stop the economy overheating.

US Treasury bond yields are at a seven-year high, echoing a market correction in February when rising yields on risk-free government debt made equities less attractive.

3.00 pm

 

Re slumps to 74.13

 

The rupee slumped to a fresh low of 74.13 as the Reserve Bank of India, in its fourth bi-monthly policy statement, has left the repo rate unchanged at 6.5 per cent. Consequently, the reverse repo rate under the LAF remains at 6.25 per cent, and the marginal standing facility rate and the Bank Rate at 6.75 per cent. Read more

2.40 pm

The Sensex tanked 607 points to an intra-day low of 34,562.52 and the Nifty plunged 203 points to 10,396.40 as the RBI has left the repo rate unchanged at 6.5 per cent and reverse repo at 6.25 per cent.

2.35 pm

RBI leaves repo rate unchanged

The Reserve Bank of India has kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6.5 per cent. Consequently, the reverse repo rate under the LAF remains at 6.25 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. The decision of the MPC is consistent with the stance of calibrated tightening of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth. Read more

 

2.20 pm

L&T Hybrid Equity

 

L&T Hybrid Equity (formerly L&T India Prudence Fund) has been a consistent performer across cycles. It has been investing 65-70 per cent of its assets in equity in the past and, hence, there has been no change in its portfolio after SEBI’s new categorisation norms. Over a five-year period, the fund has delivered around 18 per cent annual return, beating the category by 2 percentage points. Click here to read more

2.10 pm

Your Fund Portfolio

ICICI Pru Equity & Debt — which invests up to 35 per cent of its corpus in debt and the remaining in equity — and SBI Bluechip — which invests in large-cap stocks — can be considered relatively low-risk funds. Franklin India Equity and Kotak Standard Multicap invest across market capitalisations. These funds can be considered riskier than aggressive hybrid and large-cap funds, but less risky than mid- and small-cap funds. Click here to read more

1.55 pm

Invesco India Tax Plan

 

The sharp fall in the bellwether indices over the past month offers a good opportunity for long-term investors to park money in Equity-Linked Saving Schemes or ELSS funds to save on taxes under Section 80C. Investors can consider Invesco India Tax Plan which has beaten category returns over a 10-year time-frame. Click here to read more

1.40 pm

Rupee-rouble trade

 

Russia has called for introduction of rupee-rouble trade to boost bilateral trade with India, and has said it is creating a strategy to increase economic cooperation with India. Read more

1.30 pm

Concor eases terms for coastal shipping

 

Container Corporation of India has eased the terms in a fresh tender to hire two container ships for 10 years to start coastal shipping operations, after two earlier attempts failed. The company shares were trading down 0.53 per cent at Rs 605.90 on the BSE. Read more

1.15 pm

Zydus Cadila gets USFDA nod for cancer drug

 

Zydus Cadila has received final approval from the US health regulator to market Exemestane tablets, used for the treatment of breast cancer. Shares of the company’s listed entity, Cadila Healthcare, were trading 0.13 per cent higher at Rs 383.20 apiece on the BSE. Read more

1 pm

Mid-session trade

The Sensex nosedived 479.86 points to intraday low of 34,689.30 against Thursday's close of 35,169.16 and the Nifty dropped 175.9 points to 10,423.35 against 10,599.25 on heavy selling in oil & gas, PSU, infrastructure and metal stocks amid weak global cues.

The Reserve Bank of India's policy decision due later in the day also added to the cautious undertone, with the market expecting an 25 bps interest rate hike to prop up the rupee, which has weakened 15.2 percent against the dollar this year and is trading near an all-time low of 73.82 touched on Thursday.

“In general, what's driving emerging market weakness is a stronger US economy ... there is a lack of clarity on the effectiveness of rate hikes as a currency defence,” said Sunil Sharma, chief investment officer with Sanctum Wealth Management.

Major Sensex losers were ONGC, M&M, Coal India, Reliance and Vedanta, while the top five gainers were IndusInd Bank, Infosys, HDFC Bank, Kotak Bank and Sun Pharma.

 

12.50 pm

Gold holds steady

 

Spot gold inched down 0.1 per cent at $1,198.41 an ounce at 0446 GMT. It gained 0.6 per cent for the week, and was on track to mark its biggest weekly gain in six. US gold futures were up 0.1 per cent at $1,202.3 an ounce. Read more

12.40 pm

MCX gold, silver

 

Gold prices drifted lower by Rs 112 to Rs 31,305 per 10 gram at the futures trade. Silver prices dropped by Rs 113 to Rs 38,858 per kg. Read more

12.30 pm

Domestic shares fell for a third straight session, dragged by energy shares such as Reliance Industries Ltd and oil marketers, a day after the government announced a cut in fuel prices.

Top 10 Nifty gainers, losers

 

The Reserve Bank of India's policy decision due later in the day also added to the cautious undertone, with the market expecting an interest rate hike to prop up the rupee, which has weakened 15.2 per cent against the dollar this year and is trading near an all-time low of 73.82 touched on Thursday.

Read more

 

Over two-thirds of 61 economists said in a Reuters poll that the RBI would lift the repo rate at least once by the end of 2018, with over half stating that there would be a 25 basis points rise in October.

“In general, what's driving emerging market weakness is a stronger US economy ... there is a lack of clarity on the effectiveness of rate hikes as a currency defence,” said Sunil Sharma, chief investment officer with Sanctum Wealth Management.

Shares of oil marketing companies tumbled as much as 29 per cent in the morning trade as the government had on Thursday announced a Rs 2.50 reduction in petrol and diesel prices to reduce the burden on consumers.

Shares of Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd extended losses and were down as much as 24.38 per cent to 27.96 per cent.

Reliance Industries Ltd, down 3.35 per cent, contributed to almost a third of the broader NSE index's losses. Oil and Natural Gas Corp Ltd was down 10.6 per cent.

Other index heavyweights such as ITC Ltd and Hindustan Unilever Ltd were also trading lower, down 1.8 per cent and 2.4 per cent, respectively. However, IT stocks recovered after the sectoral index had closed nearly 3 per cent lower on Thursday. HCL Technologies Ltd and Infosys Ltd were up 0.9 per cent and 0.7 per cent, respectively.

12.20 pm

Dilip Buildcon gains 2%

 

Shares of Dilip Buildcon gained as much as 2 per cent to Rs 638 against the previous close of Rs 625.60 as the company has won orders worth Rs 476.02 crore for Bhopal and Indore Metro Rail project. At 12.20 pm, the shares were up 0.24 per cent at Rs 627.10 on the BSE. Read more

12.10 pm

Vivimed Labs jumps 7.5%

 

Shares of Vivimed Labs jumped as much as 7.5 per cent to Rs 42.10 against the previous close of Rs 39.15 as the company has received establishment inspection report from the US health regulator for its Mexico manufacturing facility. At 12.10 pm, the shares were up 2.3 per cent at Rs 40.05 on the BSE. Read more

12 noon

Brent crude jumps to $85 per barrel

 

Oil prices rose as traders anticipated a tighter market due to US sanctions against Iran's crude exports, which are set to start next month. International benchmark Brent crude oil futures were at $84.98 per barrel at 0504 GMT, up 40 cents, or 0.5 per cent from their last close. Read more

11.45 am

Dollar treads water ahead of jobs data

 

The dollar's rally took a pause on Friday as investors awaited monthly US jobs data later in the day and evaluated the impact of a two-day global government bond rout that has lifted US Treasury yields to seven-year highs. The dollar was basically flat at 113.93 yen on Friday, after coming off an 11-month high of 114.55 yen the previous session. Read more

11.30 am

Domestic shares were trading lower by nearly 1.5 per cent on heavy selling in oil & gas, PSU, infrastructure and metal stocks amid weak global cues.

 

 

The Sensex was down 365.78 points or 1.04 per cent at 34,803.38 and the Nifty down 143 points or 1.35 per cent at 10,456.25. Top five Sensex losers were ONGC, Vedanta, M&M, Adani Ports and Reliance, while the major gainers were IndusInd Bank, Infosys, Kotak Bank, Sun Pharma and PowerGrid.

Traders remained wary ahead of RBI monetary policy outcome later today. Given the rupee’s weakness, the market expects a hike of 25 bps in repo and reverse repo rates. Some even expect a 50-bps hike. If the RBI does hike rates, it would be the third successive rate-hike at any MPC meeting.

Shares of oil marketing companies plummeted as the Centre has cut excise duty on these fuels by ₹1.5 per litre and has asked OMCs to cut ₹1 per litre on petrol and diesel as part of the package to provide price relief to customers.

11.15 am

Bajaj Auto hits 21-month low

 

Shares of Bajaj Auto today hit a 21-month low, and chart suggests more downside. The stock fell as much as 3.74 per cent to Rs 2,557.7, lowest since January 2, 2017. Read more

11.05 am

Bank Nifty

 

Among the call option chain, the in-the-money Bank Nifty Call 24,800 option was the actively traded contract on Thursday. The option price declined 45.15 per cent to Rs 291. However, open interest in the contract climbed 7,344 per cent with fresh addition of 1,26,320 shares. Read more

10.50 am

OMC stocks tank on fuel price cut

 

Shares of oil marketing companies extended their downslide today as OMCs have been forced to cut ₹1 per litre on petrol and diesel as part of the package to provide price relief to customers. IndianOil crashed 13.72 per cent to Rs 121.05, BPCL 17.97 per cent to Rs 271.65 and HPCL 20.95 per cent to Rs 171.65. Read more

10.40 am

Rupee strengthens to 73.42

 

The rupee strengthened to 73.42 against the US dollar at the forex market today ahead of the RBI’s monetary policy outcome. After opening a tad strong at 73.56, the domestic unit hovered in a range of 73.62 and 73.42 in the morning trade. Read more

10.30 am

The S&P BSE Sensex slumped 333.99 points or 0.95 per cent to 34,835.17 and the Nifty50 dropped 121.55 points or 1.15 per cent at 10,477.70 on weak global cues and as traders remained wary ahead of RBI monetary policy outcome.

Among BSE sectoral indices, oil & gas fell the most by 9.5 per cent, followed by PSU 4.39 per cent, infrastructure 3.5 per cent and FMCG 2.13 per cent. On the other hand, consumer durables gained 1.98 per cent, IT 0.53 per cent, TECk 0.5 per cent and healthcare 0.37 per cent.

Top five Sensex losers were ONGC 11.67%, Reliance 3.55%, Vedanta 3.44%, Adani Ports 3.18% and Bajaj Auto 2.66%, while the major gainers were Sun Pharma 1.74%, Infosys 1.44%, IndusInd Bank 1.04%, TCS 0.5% and PowerGrid 0.5%.

10.15 am

Foreign portfolio investors hit

 

While domestic investors would have been rattled by the 3.7 per cent decline in the Sensex over the last two sessions that has reduced the year-to-date returns to just 3 per cent, foreign investors would be in a more dire situation. For the steep erosion in the rupee has resulted in a loss of 10 per cent for FPIs in dollar terms. Click here to read more

10 am

Goa Carbon results; Autoline’s fund-raising

The board of Autoline Industries will meet today to consider a proposal for fund-raising through issue of equity shares and/or warrants on a preferential basis to promoters and other investors. Shareholders will closely monitor the development.

Goa Carbon will be the first company to announce its Q2 financial performance this results season. Its board will meet on Friday to consider results for the period ended September 2018. Focus will be on both companies. _ Our Bureau

9.50 am

Benchmark indices were trading down lower as investors remained cautious ahead of RBI monetary policy outcome.  The Reserve Bank of India is expected to raise rates for a third time since June on Friday to combat inflationary pressures as it grapples with a weakening rupee, surging oil prices and market instability sparked by a major non-bank finance firm's defaults.

The Sensex was trading lower by 191.68 points or 0.55 per cent at 34,977.48 and the Nifty down 100 points or 0.94 per cent at 10,499.25.

Brokers said investors offloaded their positions, tracking a selloff in global markets as US Treasury surged to multi-year highs on robust economic data and comments from the Federal Reserve, sparking fears of accelerating inflation.

Besides, caution ahead of RBI’s monetary policy announcement which expected to hike interest rates by 25 basis points, too, dented the trading sentiment.

9.45 am

AU Small Finance Bank falls 0.5%

Shares of AU Small Finance Bank were trading down 0.46 per cent at Rs 551.75. Crisil has upgraded the rating for its long-term debt instruments from ‘A+’ to ‘AA-’. The rating signifies high degree of safety and very low credit risk. This upgrade is quite reassuring in the present market conditions, Sanjay Agarwal, MD and CEO of the bank, said, and added it will significantly help them build one of the most trusted, customer-focused retail bank in the long term and create value for all stakeholders. _ Our Bureau

9.35 am

Investors lose Rs 5 lakh crore

Sensex crashes over 806 points to end at 35,169.16 after the rupee crashed to a new life-time low. File Photo   -  BusinessLine

 

Investors became poorer by Rs 5 lakh crore in two days of stock market crash where the BSE benchmark index plummeted by 1,357 points. Markets witnessed severe selling on Thursday with the benchmark Sensex crashing over 806 points to end at 35,169.16 after the rupee crashed to a new life-time low and global crude oil price breached the $86 a barrel. Read more

9.25 am

Will there be a 25 bps or 50 bps rate hike?

After the Finance Minister announcing a cut in excise duty on oil prices on Thursday, all eyes are now on the RBI meet outcome on Friday. Given the rupee’s weakness, the market expects a hike of 25 bps in repo and reverse repo rates. Some even expect a 50-bps hike. If the RBI does hike rates, it would be the third successive rate-hike at any MPC meeting. Stocks of rate-sensitive sectors such as banks, NBFCs and auto companies may come under pressure if the RBI surprises them negatively. _ Our Bureau

9.15 am

Opening bell

The 30-share BSE index Sensex opened lower by 229.02 points at 34,940.14 against the previous close of 35,169.16 and the 50-share NSE index Nifty down 123.9 points at 10,475.35 against 10,599.25.

9.20 am

Day Trading Guide

Given below are supports and resistances for Nifty 50 futures and seven key stocks that can help in your intra-day trading:

 

₹1960 • HDFC Bank

S1

S2

R1

R2

COMMENT

1940

1920

1980

2000

Fresh long positions are recommended with a fixed stop-loss only if the stock rallies above ₹1,980 levels

 

₹706 • Infosys

S1

S2

R1

R2

COMMENT

698

686

715

728

Make use of intra-day rallies to sell the stock of Infosys while maintaining a stiff stop-loss at ₹715 levels

 

₹287 • ITC

S1

S2

R1

R2

COMMENT

285

282

290

293

Fresh short positions can be initiated with a stiff stop-loss only of the stock falls below ₹285 levels

 

₹174 • ONGC

S1

S2

R1

R2

COMMENT

170

166

178

181

Initiate fresh long positions with a tight stop-loss if the stock rebounds up from ₹170 levels

 

₹1120 • Reliance Ind.

S1

S2

R1

R2

COMMENT

1105

1085

1136

1155

Last session, the stock tumbled 7 per cent with good volume. Near-term view is negative. Sell in rallies

 

₹270 • SBI

S1

S2

R1

R2

COMMENT

265

260

276

282

Consider initiating fresh long positions with a fixed stop-loss only if stock of SBI climbs above ₹276 levels

 

₹2064 • TCS

S1

S2

R1

R2

COMMENT

2040

2010

2085

2105

Outlook is bearish for the stock of TCS. Sell in intra-day rallies while retaining a stiff stop-loss at ₹2,085 levels

 

10631 • Nifty 50 Futures

S1

S2

R1

R2

COMMENT

10582

10530

10685

10730

The contract tests a key support. Go short only if the contract declines below 10,582 with a fixed stop-loss

 

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

9.05 am

RBI monetary policy meet

 

The Reserve Bank of India is expected to raise rates for a third time since June to combat the inflationary pressures as it grapples with a weakening rupee, surging oil prices and market instability sparked by a major non-bank finance firm's defaults. Anticipation of a rate hike has increased in the past month as oil prices climbed, the rupee's slide accelerated and concerns on liquidity emerged. Read more

9.00 am

Today's stock pick

 

Berger Paints India (₹273.5): Sell

Investors with a short-term perspective can sell the stock of Berger Paints India at current levels. On Thursday, the stock fell by 3 per cent breaching its 200-day moving average as well as a key support at ₹280. With this fall, the sock has strengthened its short-term downtrend that has been in place from the August 2018 high of ₹349. Read more

Published on October 05, 2018